Woolworths sinks $972bn into red as new chief appointed

WOOLWORTHS has been dragged $972 million into the red after taking a $3.25 billion hit on its ill-fated Masters home improvement stores.

Newly appointed Woolworths CEO Brad Banducci poses for a photograph in a food store at the company headquarters in Bella Vista. February 26, 2016. (AAP Image/David Moir) NO ARCHIVING

RETAIL giant Woolworths has chalked up its first loss in 23 years after taking a $3.25 billion hit from its ill-fated Masters home improvement stores.

The company, which has concluded its eight-month search for a chief executive with the immediate promotion of supermarkets head Brad Banducci to the role, revealed a huge $1.9 billion one-off writedown in its first half results released today.

The loss attributable to equity holders was $972.7 million.

Woolworths in January announced it was closing its loss-making Masters stores, which had failed to challenge the dominant Bunnings chain owned by rival Wesfarmers.

“The decision to exit home improvement will allow Woolworths to focus its energy and resources on strengthening and executing its plans in its core businesses,” chairman Gordon Cairns said.

Even excluding the impairment, Woolworths’ first half-profit tumbled from $1.28 billion for the same period a year earlier.

Revenue from Australian food, liquor and petrol declined 2.58 per cent to $24.96 billion.

Mr Banducci will now be tasked with leading the company’s revival, although he will continue to fill his former role of managing director of Woolworths Food Group until a replacement is found.

Woolworths had been looking for a chief executive since June, when Grant O’Brien said he was quitting.

“We undertook a rigorous international search process to find the best person to rebuild the Woolworths business and return it to sustainable growth,” Mr Cairns said.

“While there were several strong candidates, the board was unanimous that Brad was the strongest of the field.”

AAP

Originally published as Woolworths sinks $972bn into red as new chief appointed